An Empirical Appraisal of Growth Of Mutual Funds In India With Special Reference To SBI And Tata Mutual Funds

Abstract

Financial inclusion plays crucial role to attain the goal of inclusive growth in the country. newlineFinancial Inclusion includes many institutions like banks, self-help groups, LIC, post offices newlineand micro finance institutions etc. In India, efforts to provide thrift, credit and other financial newlineservices to poor by mainstream institutional players, such as banks, are being promoted for newlineachieving the objective of financial inclusion. Towards this end, Self Help Groups (SHGs) newlineorganized around savings and credit activities of members, are growing at a phenomenal newlinepace. The SHG bank linkage programme in India is considered to be a successful model to newlinepromote financial inclusion. However, recently there have been rising concerns about newlinesustainability of the groups. Sustainability issues are reflected in dwindling membership, newlinerising loan defaults, poor record keeping, limited credit absorption capacity, excessive newlinereliance on promoting institutions etc. This research is situated in context of the growing newlinethreat to sustainability of SHG bank linkage movement and dwells into exploring the issue of newlinesustainability of SHGs in detail. With this background, this thesis addresses the following newlineresearch problems. The first research problem studies two aspects of financial inclusion. In newlinefirst aspect, the response of bankers towards various financial inclusion mechanisms is newlinesolicited by means of a survey of 91 bank managers. The results of responses indicate that newlineSHGs are the preferred and most commonly used method of inclusion as against other newlinemethods of promoting inclusion. The second aspect of financial inclusion is analyzed at the newlinehouse hold level to empirically ascertain the factors that serve a spot entail driver towards newlinefinancial inclusion of households. 423 households. Factors such as literacy, high income, newlineproximity to bank, receiving government benefits, residing in plain areas and SHG newlinemembership are seen to have a favorable effect on the likelihood of household having a bank newlineaccount. newlineKeywords: Banks, Self-help groups, LIC, Post Offices and Micro Finance Institutions newline